IKB Deutsche Industriebank AG / Quarter Results 29.04.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- IKB Deutsche Industriebank posted a loss for the first half of the financial year 2007/08 (1 April to 30 September 2007) of - 1.0 billion. The losses of portfolio investments led to a negative net income from financial instruments at fair value of - 2.0 billion (first half of the financial year 2006/07: 68 million) and negative net income from investment securities of -1.0 billion ( 8 million). In contrast, the positive result from the assumption of risks by the banking pool amounted to 2.2 billion ( 0.0 million). The key figures from the P&L account are as follows: Net interest income 268 million ( 321 million) Provisions for possible loan losses 166 million ( 139 million) Net fee and commission income 34 million ( 27 million) General administrative expenses 183 million ( 143 million) Despite a half year loss of - 1.0 billion IKB confirms its forecasted result for the entire financial year (FY) 2007/08 of - 0.2 billion: as of 30 September 2007, losses from obligations towards Havenrock have largely been accounted for, while the additional support by KfW and the banking pool, which was granted in November 2007, has not yet been taken into account. Besides, revenues resulting from the valuation of liabilities, mainly hybrid securities, have increased significantly since 30 September 2007. The favourable valuation effect of compensation out of future profits (Besserungsabrede) of 0.35 billion, which is an element of KfWs capital injection, has also affected the results. Overall, these effects significantly outweigh the increased value adjustments of portfolio investments required since 30 September 2007. Core business also affected by crisis In IKBs core business segments, Corporate Clients, Real Estate Clients and Structured Finance, adjusting events as of today have been included in risk provisioning. Thus, risk provisioning increased significantly in all segments. In the first six months of the financial year 2007/08, the Corporate Clients volume of new business rose to 2.6 billion ( 2.1 billion). The segment posted an operating loss of - 18 million ( 42 million), due to negative valuation results of Private Equity activities and significantly increased provisions for possible loan losses. Net interest income of the operational business was on pre-year level. In the segment Real Estate Clients new business volume increased to 0.7 billion ( 0.4 billion), due to European activities. However, corresponding administrative expenses and provisions for possible loan losses also increased. The operating result amounted to 3 million ( 12 million). The segment Structured Finance posted a negative operating result of - 10 million ( 47 million) due to a doubling in risk provisioning and necessary valuation adjustments on First Loss Pieces of IKBs own securitised credits. At 3.1 billion new business was down slightly compared to the previous record year ( 3.4 billion). SME business in total 2007/08 on pre-year level The disbursements for the financial year 2007/08 (1 April 2007 to 31 March 2008) increased in the segment Corporate Clients to 4.7 billion ( 4.6 billion), even though IKB in recent months had reduced on the level of new commitments. New disbursements in the Real Estate Clients segment increased to 1.4 billion ( 1.3 billion). After the exceptionally strong results in the Structured Finance segment in FY 2006/07 ( 5.3 billion), new disbursements for FY 2007/08 went down to 3.8 billion due to market conditions. Strong interest from bidders for IKB The sale of stakes of KfW Banking Group (45.5%) and Stiftung Industrieforschung (10.7%) in IKB is proceeding according to plan. The data room for national and international bidders, who had previously made indicative offers, has been open since 18 March 2008. Bidders confirmed their substantial interest in acquiring IKB during last weeks management presentations. The bidders recognised the banks value drivers and in particular IKBs focussed business model, the long-standing relationships with mid-sized corporate clients ('Mittelstand'), the strong market position and IKBs experienced staff. Further substantiated offers have to be submitted by mid May 2008. Financial Calendar updated IKB will publish 9-month figures 2007/08 in May 2008 and preliminary figures for the financial year 2007/08 in June 2008. The Board of Managing Directors Düsseldorf, 29 April 2008 Contact: Dr. Jörg Chittka, Phone +49 (0) 211 8221 4349, Dr. Annette Littmann, Phone +49 (0)211 8221 4745, Email: investor.relations@ikb.de DGAP 29.04.2008 --------------------------------------------------------------------------- Language: English Issuer: IKB Deutsche Industriebank AG Wilhelm-Bötzkes-Straße 1 40474 Düsseldorf Deutschland Phone: +49 (0)211 8221-4511 Fax: +49 (0)211 8221-2511 E-mail: investor.relations@ikb.de Internet: www.ikb.de ISIN: DE0008063306 WKN: 806330 Indices: SDAX Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard), Düsseldorf, Hamburg, München; Freiverkehr in Hannover, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: IKB: 6-month figures 2007/08 strongly affected by crisis SME business in total 2007/08 on pre-year level Bidder interest strong
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